EUR/USD: the Euro is under pressure on 07.07.2015

7 July, 2015

Current trend

The pair EUR/USD remains under the pressure as worries regarding Greek exit from the Eurozone grow. Today, an emergency EU leaders’ summit is held, where Greece is going to put ahead their proposals to get the financial aid. Country’s default possibility becomes stronger.

Additional pressure on the pair comes from ECB Quantitative Easing program and the Fed’s tightening policy. Dollar index WSJ grew by 0.15% to 87.44. However, Swiss NB market interventions with Frank selloffs may give unexpected support to the Euro.

According to today’s releases, trade deficit in France for May grew by 4 billion euro, while industrial production growth in Germany was 0% (forecasted 0.1%).

Important news from the US for today include Trade Balance for June, due at 3:30 pm (GMT+3) (forecasted trade deficit increase, from $40.88 billion to $42.60 billion), Redbook index for previous week at 3:55 pm (GMT+3), and JOLTS Job Openings for May at 5 pm (GMT+3).

Thus, in the short and medium-run, the Euro is likely to continue declining.

Support and resistance

The pair is moving towards 2015 low at 1.0480.

At present, the price remains near the lower border of the upward channel (1.1000), the breakdown of which would allow the pair to fall towards 1.0860.

Related materials

US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.

Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...

Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...

Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...

The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...

Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...

While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session...

API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...

4 February 2016

In the past 24 hours Bitcoin has lost -13.28% and reached $4863.73075161.
Open your trading account with the best cryptocurrency brokers on special terms today.

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.